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Share Blocks Control Act 1980 (Act No. 59 of 1980)

Schedule 1 - (Section 8 (3))

8. Transfer of units by a Company to its members or other persons

 

(1) Any company which operates a share block scheme in relation to property in respect of which a sectional title register has been opened, shall transfer each unit comprised in such property in the name of the person who has a right to the use of such unit by virtue of an agreement between the company and that person, if—
(a) that person has discharged all his obligations to the company and any other person, if any, from whom he has acquired a share in terms of a contract contemplated in section 17, or has made arrangements to the satisfaction of the company and that other person, if any, to ensure the discharge of such obligations;
(b) that person in writing requests the company to transfer the said unit in his name;
(c) arrangements have been made to the satisfaction of the company for payment of all costs and the signing of all documents required in connection with the transfer;
(d) in any case where the said unit is, together with other units comprised in the property, mortgaged, the mortgagee has agreed to release the said unit from the mortgage bond; and
(e) that person has complied with the provisions of sub-item (2).

 

(2) The person contemplated in sub-item (1) shall, at the time he lodges the written request referred to in sub-item (1) (b) with the company, deliver to the trustees contemplated in section 31 of the Sectional Titles Act of the body corporate referred to in item 7 or, if the body corporate has at that time not been established, to the company, to be held by it on behalf of the said trustees until the body corporate has been established—
(a) the certificate in respect of the share of the company which he holds and which relates to the unit referred to in sub-item (1), together with share transfer forms signed by him in blank; and
(b) a document in which he waives, with effect from the date on which the said unit is transferred to him, any rights which he may have against the company relating to the use of that portion of the property in respect of which the company operates the share block scheme, which relates to that unit.

 

(3) The conveyancer’s certificate under section 11 (4) of the Sectional Titles Act shall, in addition to containing the certificate referred to therein, certify that—
(a) according to a sworn declaration furnished by the company concerned, the levies contemplated in section 13 of this Act to be paid to the company by the person referred to in sub-item (1), have been paid or payment thereof has been secured to the satisfaction of the company; and
(b) the documents referred to in sub-item (2) have been delivered according to the provisions of that sub-item.

 

(4) Notwithstanding anything to the contrary contained in any other law—
(a) any share of a company which operates a share block scheme in relation to property in respect of which the sectional title register referred to in item 1 has been opened, shall, if the certificate in respect of such share has been delivered to the trustees as contemplated in sub-item (2) of this item, be transferred by the company in the name of those trustees, who shall hold that share as the nominees of the person who is then the owner of the unit in question transferred under sub-item (1) of this item;
(b) any share transferred in terms of paragraph (a) in the name of the trustees, shall not confer upon those trustees any rights against the company, save when all the issued shares of the company have been registered in the name of those trustees, in which event, if the majority in number of the owners as defined in section 1 of the Sectional Titles Act, of the units transferred under sub-item (1), so decide, the trustees in question shall procure the winding-up or deregistration of the company under the provisions of the Companies Act, and in the absence of such a decision within a reasonable time, each such share shall be registered in the name of the person who is then the owner of the unit in question transferred under sub-item (1).